Stablecoins aim to track a reference value, often a fiat currency. Different designs rely on different collateral, counterparties, and mechanisms.
Look behind the peg
For reserve-backed assets, examine what supports the token and who can redeem it. For other designs, understand how collateral and incentives behave when markets become stressed.
Read the terms
Attestations, redemption rules, custody arrangements, and jurisdiction are all relevant. A token’s market price can diverge from its intended reference value.
Understand the chain
The same asset name may appear on multiple networks or in bridged forms. Verify the contract and issuer’s supported network list before interacting.
For educational purposes. Views should be assessed against their evidence and publication date.
